John Chambers, CEO of the Networking Giant, CISCO Systems Inc, goes over big with solemn affectation of dignity about IoE/IoT ( Internet of Everything/Internet of Things ) and the numbers he reels off in support is more than impressive and astounding.

– By 2020, about 50 billion devices will be connected to the Internet;

– About half of the World’s population will have network access by 2020;

– 90 % of World’s data created in the last 2 years;

– More new data is generated in 2012 than in previous 5000 years;

– By 2020, about 40 % of data will come from sensors;

– Connected devices since Barcelona 2013 event is 13, 692, 430, 834.

Hamburg in Germany, Use of IoE to connect parking, lighting, and traffic.

If there is one company that wants to be in the forefront of IoE/IoT technologies and lead the move to tap in to the $ 19 Trillion opportunity to sell its networking equipment and consulting services while accelerating global industrial growth, it is CISCO indubitablement. Cisco’s major stake in connecting the unconnected is exemplified by its unique ‘Innovation Platform’ called the ” Cisco Hyper Innovative Living Labs ” ( CHILL ) created to take the chill off the grey cells of its associates and accend their creativity. Adapting and connecting people, process, data and things from specific sectors of industry is its noble vision.

Enabling data sharing across all modes of transportation, IoT

Cisco’s 1720 sq ft Innovation Center in Barcelona will open during 2016 summer to be functionally prepared for the Mobile World Congress in 2017. By then it will also have similar facilities in South Korea, Brazil, Germany, Canada, and Rio de Janeiro. Cisco intends to invest close to $ 30 million for various facilities, IT equipment, procuring the services of engineers, and application developers from 2015 to 2020.

IoT – Connected learning initiative.

Smart buildings; Smart street lighting; Smart parking; Smart grid; Public transport; water management; Waste management; Fleet management; Disaster response; Cyber security; Connected learning; Bridges maintenance; Gas monitoring are just a few areas of expertise and initiatives – specially in Public Sector – that any country can rely upon and be the customer(s) of CISCO Services. A host of other private initiatives are also on the anvil.

Significant to note is the resolve, determination, and declaration of ISRAEL to be the first ” Digital Country ” in the World with Cisco initiatives.

IoT initiative – Connected Factory.

With India’s focus on the creation of sustainable and efficient ‘Smart Cities’ ( General Budget 2015 ), Cisco’s Smart City Services Solutions in making our dream a reality can never be stronger than now. India recognizes that major services in cities are becoming digital world over, and going beyond simply reacting, it needs to endeavor strongly to take full advantage of such services solutions.

IoT initiative – Connected Health Care.

Cisco’s Services Solutions can help our city leaders to address the problems of traffic jams, overcrowding, pollution, resource constraints, inadequate infrastructure, and need for controlling economic growth. With peoples’ craving for proper and efficient access to government services escalating, and their aspirations to lead a quality of life sans any hurdle(s), creation of efficient services and well livable cities become paramount.

IoT initiative – At Stanley Blank & Decker.

Not just Cisco, but HP, IBM, AT&T, Microsoft, Intel, Citrix, GE, Juniper Networks and many others are convinced that IoT is “the” technology that can make the cities of the future. IBM announced its IoT vision last year. Microsoft joined the IoT market last year. UK created 45 million Pound Sterling IoT fund. Intel announced an IoT group last year.

Many of these companies aver that to make things happen City leaders should initiate a genuine process of debate and discussion involving IT experts, business experts and not the least Academia in order to first identify major IoE/IoT opportunities in specific sectors.

Just citing an example here : Indian Agriculture is fully woven in to the fabric of our citizenry as a whole and attempts to bring about better quality of living to the agri producers is by using modern technology tools like Smart Sensors and/or other networked/big data technology. Result will be seen in improvement of food quality and quantity coupled with shortened time period to achieve the same. Returns higher than anticipated/expected for a diverse category of produce, new jobs, and even new markets could be other rich possibilities.

Only such efforts will mark ‘higher order leadership’ and ‘genuine commitment to the people’. Only such efforts have the potential to change the landscape of tech trends and applications in areas/sectors where the outcome can be disruptive in the society.

Will India become a ” Digital Country “ and if so when? is what will cross the mind of every Indian now.

Last week’s announcement ( Friday, April 10, 2015 ) by General Electric ( GE ) to sell $ 26. 5 billion of Real Estate Assets of GE Capital was music to the ears of many while some remained skeptical of the effect. Shareholders are likely to be delighted while some big banks/institutions may likely feel de – lighted ! Shares went up by 11 % pronto to $ 28. 51 unseen since the financial crisis of 2008.

With this, GE, one of the oldest and best managed company seems to be coming a full circle back to where it was in 1981 returning to its core and tasty muttons – the well reknowned industrial operations – from which it is expected to gain nearly 90 % revenue(s) in 3 years’ time, compared to the 58 % it exhibits now. GE’s empire encompasses 175 countries and employs 3,05,000 people.

GE logo

In a swift action, likened to Usain Bolt’s sprint, GE helped by the Blackstone group shed $ 26. 5 billion without any auction that could possibly have fetched more. Plummeting real estate prices and the likely increase in Fed rates by this year end or earlier may have been the catalyst triggering this quick action.

In management terms, it may be called the ” line retrenchment ” action.

All these to return more money to shareholders – say about $ 90 billion overall.

GE will also be equally keen to shed the tag of SIFI ( Systemically Important Financial Institution ), the ‘fonctionnaire nom’ for a leader deemed by the government as ‘ too big to fail’.

Financial crisis of 2008 and the profound change in market movement left the industrial conglomerate in difficulties to borrow debt ( specially short-term ) for its day-to-day operations. By now it has set in the process of shedding its presence in finance slowly. It took sometime. Better late than never may be on mind. With this move GE is expected to bring in just 10 % or less of profit from finance by 2018 and will restrain its lending also drastically making it available only for customers purchasing industrial machines like jet engines, oil field equipments … .. .

Let’s now turn to the management take away from this now :

Production engines at GE plant in Ohio.

1. This marks the realization and conviction that GE’s ‘ Core Competence / capability ‘ ( Recall management Guru Late CK Prahalad and Prof Gamel ) is Industrial Engineering ( Aviation, Power Generation, Medical devices .. . ) and not so much Financial Engineering. Since 2007 GE has been going big on its Oil & Gas (equipment manufacturers) acquisitions. Since 2009 its Oil & Gas Division has shown the fastest growing sales. It acquired Dressler Inc, a manufacturer of engines, pumps, and valves for $ 3 billion. It paid Well Stream, a British manufacturer of oil drilling pipes $ 1. 2 billion. It gave $ 2. 8 billion for a division of WoodGroup in 2011 to enhance recovery of oil from large undersea wells. It also wanted to take over Dril Quip (DRQ) offshore drilling and production equipment for deepwater and harsh environment conditions for $ 4. 4 billion. It also paid $ 13. 5 billion to take over the energy assets of the French Conglomerate, Alstom. It has consistently engaged itself in slow transformative action(s) considering the geopolitical conditions and business circumstances.

Corporate growth in line with future of businesses in which GE competes is the emphasis here.

2. Core business, specialization, growth, focus and low risk are the keywords that mark GE’s actions now to get back to its roots and combine to form a renewed industrial giant. GE’s CNG in a Box; Micro CNG Plant; 5 K Bland Shear Ram; Acoustic Leak Detection System in subsea equipment; Electrical Safety System for Offshore Platforms have all gained prominence since 2011. Each bore the stamp of the CEO, Jeffrey R. Immelt.

Characteristic of products meeting the needs of customers has been the priority.

3. This also marks the beginning of a move to GE as well as to its CEO, Jeffrey R, Immelt, to come out of the shadow of the previously popular CEO, Jack Welch ( 1981 – 2001 ) while presiding the transformation of GE under Jeffrey R. Immelt’s own steam. CEO, Jeffrey R. Immelt, is also on course to creating a legacy for himself, having been at the helm for 14 years. ( In the mobile world a parallel can be drawn to Apple’s CEO, Tim Cook, coming out of the shadow of Late Steve Jobs with his own iWatch ).

CEO, Jeffrey R. Immelt, proves to be an ‘independent influencer’ of the GE family.

Last week’s ( Friday, April 10, 2015 ) announcement of General Electric ( GE ) to sell $ 26. 5 billion of real estate assets of GE Capital had been music to the ears of many while being skeptical to some. Shareholders will feel delighted while some big banks/institutions may likely be de – lighted ! Shares of GE went up by 11 % pronto to $ 28. 51 unseen since the financial crisis of 2008.

With this, GE, one of the oldest and the best managed company seems to have come a full circle back to where it was in 1981 returning to its core and tasty muttons, the well reknowned industrial operations, from which it is expected to gain nearly 90 % revenue(s) in 3 years’ time compared to the 58 % it exhibits now.

GE logo

In a swift action that may be likened to Usain Bolt’s sprint, GE helped by the Blackstone group shed $ 26. 5 billion without any auction that could possibly have fetched more. Plummeting real estate prices and the likely increase in Fed rates sooner this year may have been the catalyst triggering this action. GE also may be keen to shed the tag of SIFI ( Systemically Important Financial Institution ), the ‘fonctionnaire nom’ for a lender deemed by the government as ‘ too big to fail ‘. GE’s empire encompasses 175 countries and employs 3,05,000 people.

In management it is a ‘line retrenchment’ action.

– GE will now be less of a ‘too big to fail’ lender.

– GE will likely buy back $ 36 billion in cash from overseas.

– GE will receive about $ 50 billion from stock repurchase.

All of these to return more money to shareholders – say about $ 90 billion, overall.

Financial crisis of 2008 and the profound change in market movement left the industrial conglomerate in difficulties to borrow debt ( short-term ) for its day-to-day operations. IT aimed to cut costs. It has also been in the process of shedding its presence in finance slowly. It, however, has taken time. Better late than never may have been in the mind.

With this move, GE is expected to bring in just 10 % or less in profit from finance by 2018 and will restrain its lending drastically making it available only for customers purchasing industrial machines, jet engines, oil field equipment … .. .

Let’s now turn to the management takeaway from this :

Production engines at GE plant in Ohio.

1. This marks the realization and conviction that GE’s ‘Core Competence/Capability’ ( recall Management Guru Late CK Prahalad and Prof Gamel ) is Industrial Engineering ( Aviation, Power Generation, Medical Devices .. . ) and not so much Financial Engineering. Since 2007 GE has been going big on Oil & Gas (equipment manufacturers) acquisitions. Since 2009 its Oil & Gas Division has shown the fastest growth in sales. It acquired Dressler Inc., a manufacturer of engines, pumps, and valves for $ 3 billion. It paid WellStream, a British manufacturer of Oil drilling pipes $ 12. 2 billion. It gave $ 2. 8 billion for a division of Wood Group in 2011 to enhance recovery of oil from large undersea wells. It also wanted to take over Dril Quip (DRQ) for $ 4. 4 billion – an offshore drilling and power equipment manufacturer for deep water and harsh environment conditions. It gave $ 13. 5 billion in the take over of the energy assets of the French Conglomerate, Alstom. It has consistently engaged itself in slow transformative action mindful of the prevailing geopolitical conditions and business circumstances.

Corporate Growth in line with future of businesses in which GE competes is the emphasis here.

2. Core business, specialization, growth, focus, and low risk are the keywords that will mark GE’s actions to get back to its roots and combine to form in to a renewed industrial giant. GE’s CNG in a Box; Micro CNG Plant(s); 5K Blind Shear RAM; Acoustic Leak Detection System in sub sea equipment; Electrical Safety System for Offshore Platforms – have all gained prominence since 2011. Each bore the stamp of CEO, Jeffrey R. Immelt.

Characteristic of products meeting the needs of customers has been the priority.

Jack Welch and Jeffrey R. Immelt sharing thoughts.

3. These mark the beginning of a move for GE as well as to its CEO, Jeffrey R. Immelt, to come out of the shadow of the previously popular Jack Welch ( 1981 – 2001 ) while presiding the transformation of GE under CEO, Immelt’s own steam. He is also, probably, on course to create a legacy for himself having been at the helm for 14 years. ( In the Mobile World, recount Apple’s CEO, Tim Cook, establishing a name for himself with the launch of iWatch recently ).

CEO, Jeffrey R. Immelt, proves himself to be an ‘independent influencer’ of the GE family.

Facebook ( FB ) is in every discerning mind’s age displaying special powers of omnipresence and omnipotency in today’s world of growing ‘Social Climbers’ with a common purpose.

Billboard on Thomson Reuters building welcoming FB to NASDAQ 2012.

A predominantly Social Network Medium promoted with the chief objective of ” Connecting the World ” captivating instantly and totally the attention of the young and the old alike opening their minds to smooth networking and collaboration.

Inside the FB Headquarters, Menlo Park, CA, in 2014.

Headquartered at Menlo Park, California, U.S.A., its 1. 39 billion users; 30 million small business accounts; and 2 million advertisers speak for its ubiquitous march in our society in this millennium. Within a decade of its launch it has almost become a solemn badge for anyone wishing to get accepted in the society.

FB Popularity Graph.

Now in its phase of expansion, three significant offerings make Facebook ” increase its breadth ” while simultaneously posing challenges to standalone competitors in their respective sectors : (a) FB Banking; (b) FB Enterprise Network; and (c) FB as a participating agent in Internet of Things ( IoT ).

1. FB Banking : The intent of this service is to enable money storage; exchange money with others; utilising money to buy goods and services; send presents to the near and dear; … .. . The huge following that FB enjoys is its Capital. Consider the situation where just 1/4th of the users engage genuinely in such transactions and the nerves of the big banks, or even PayPal/eBay may well get frequent twitches. For FB which prevails over social networking, this will be like opening its brand of ” relationship banking “, a thing almost unseen in today’s competitive circumstances in traditional banks.

An initiative that will send a wake up call to many in the sector.

2. FB at Work : This signals the climb to the next rung of the ladder of growth, a welcome addition from the consumer oriented networking tool to an enterprise oriented communication tool. Salesforce.com’s Chatter and Microsoft’s Chatter will likely get aroused. Designed for employees’ mutual action and collaboration but requiring far more involved and penetrating capabilities than what is existent in the consumer oriented social networking. Challenges are not just limited to this alone. Categorization of individual and work accounts and other complexities as and when the use begins will need to be tackled. The big plus point, though, is the ‘familiarity’ that one has with FB.

An initiative that marks a fresh enterprise play from a wholly consumer play.

3. FB’s foray in to Internet of Things ( IoT ) : Cisco predicted that by 2016 about 26 billion devices will be connected to the Internet. Companies and big players are gearing up to be counted as agents in this big game. FB’s clout cannot be contained as its acquisition of Parse, a cloud application platform, would suggest. Parse is a pastmaster in the development of software in guiding the IoT play. For its part, FB also encourages the developers to work on specific events to connect them to the whole system.

An initiative that makes it a part of a systematic world in the IoT play.

Let’s turn to the Management take away from this now :

The above mentioned initiatives are an essential part of ” New Service Offerings ” that companies resort to usually in the growth/diversification phase(s). These are not new to customers but constitute new uses for existing customers as well as new registrants. In effect, it is a sort of ‘service duplication’ much akin to, if one were to draw a parallel in industrial settings, for e.g., Kodak’s introduction of Instant Cameras challenging the Polaroid in the late 1970s. Hence, these cannot be counted as innovations and to what extent these will alter the customer behavior and customer interest patterns is not clear at this juncture. The focus, however, in these introductions is on both the existing users and addition of new registrants who will be convinced of the usefulness of the platform.

Opportunities for these services exist; target segments are covered in the 1. 39 billion and more users; the services mix for these offerings are determined by the interests of the users – all within the context of FB’s grand ” Strategic Plan “.

Facebook for all!

With ‘FB generation’ growing by each day and FB’s brand name and presence in the sphere of social engagement remaining strong, can FB become the ” Real Choice ” of people for their services in future is what will cross the minds of stakeholders, analysts, users, and people at large.

In pirlicue, to quote what CEO, Mark Zuckerberg said in 2012 : ” We don’t build services to make money; we make money to build better services “.